The exchange rate should be key to the Polish central bank's policy moves and the zloty must not be allowed to firm towards 3.6 per euro because this would harm the economy, a member of the Monetary Policy Council (MPC) said.
Andrzej Kazmierczak told Reuters in an interview on Friday that further foreign exchange interventions would be necessary if the zloty's appreciation persists. The bank intervened last month to buy euros in an attempt to curb the zloty's rise.
Kazmierczak, who has spoken in favour of keeping borrowing costs low, said the next few months would be crucial for deciding the direction of monetary policy, adding that both interest rate hikes and cuts were still possible. "In my opinion the exchange rate limit whose breaching would lead to a collapse in Polish exports is 3.6 per euro. We should not get close to this exchange rate.